Xiao Yuanqi, vice head of China’s National Financial Regulatory Administration, warned Tuesday that global capital is flooding into AI too quickly, threatening traditional industries and financial stability. He said inflows into leading AI firms are raising borrowing costs and credit risks for traditional businesses and urged macroeconomic and risk-prevention frameworks, according to BeInCrypto. At the Hong Kong Monetary Authority summit, Vice Premier He Lifeng backed Hong Kong, pledging to keep yuan channels open, boost liquidity and expand bond issuance. Chief Executive John Lee cited digital assets, green bonds and progress on a Shanghai gold-trading link. The STAR 50 fell nearly 4% Tuesday to its lowest since April 2025; the CSI 300 lost 0.2%.